One of the most common types of leasehold properties is flats, especially newbuilds. Leaseholders are liable to pay not only for the property, but also an annual ground rent and service charge to their freeholder. Ground rent is the fee a leaseholder pays to their freeholder for the land beneath their building. However, homes already purchased with a ground rent in the terms of their lease were left liable to pay. The government has introduced a ground rent cap of £250 per year for all leasehold properties.